Renters in Spain face major housing changes but the battle is not over yet

Renters across Spain, including thousands of British and other foreign residents, could be in line for greater protection and longer rental contracts after the Government approved its latest housing package.

However, Tuesday’s Council of Ministers decision is not the final stage just yet.

Two separate “real decreto-ley” measures (bills) have been approved following a last-minute negotiation between the PSOE and Sumar parties. The Government now needs to take them through the lower house, Congress, where their future will be decided.

What could change for renters in Spain?

The package contains several measures that could affect people renting their main home, including:

• Up to two extra years on some rental contracts due to expire before December 31, 2028, subject to the conditions contained in the legislation.
• Greater protection against eviction for vulnerable households without alternative accommodation, with protection reported to extend to 2030 in the circumstances covered by the decree.
• New rules for room rentals, bringing this increasingly common form of accommodation into the housing measures.
• Tighter controls on temporary rentals, aimed at preventing seasonal contracts being used to avoid ordinary rental protections.
• Measures affecting large property investors, including restrictions intended to prevent certain speculative purchases.
• Tax measures designed to encourage more affordable rental housing.

This is what is promised, but so far are yet to be put in legally-binding text. The precise conditions attached to each measure will be crucial, particularly for private landlords and tenants whose contracts are approaching their expiry date.

From Maricarmen to Zaragoza

The housing package comes after a stressful week of intense public attention on evictions.

The case of 87-year-old Maricarmen Abascal became a national symbol after her eviction in Madrid prompted protests and a housing campaign outside the capital’s Puerta del Sol.

Then, on Tuesday morning, September 29, another eviction attracted attention in Zaragoza. Esperanza and her 11-year-old daughter were due to be evicted from their rented home, but the eviction was suspended after supporters gathered outside the property. The case added another human face to the debate on what protection vulnerable tenants should receive.

For renters watching events unfold, however, the most important question is what happens next.

Congress now holds the key

Approval by the Council of Ministers does not mean the measures are permanently settled. A “real decreto-ley” can come into force, but it must then be convalidated by Congress within the constitutional deadline.

The Government is therefore moving rapidly towards the next stage, with the political parties now having to decide whether they will support the measures. That process could produce further changes, particularly because some parties have already raised concerns about how the package affects landlords.

The earlier rental decree approved in March provides a reminder of why this matters. Congress rejected that measure in April, meaning its proposed two-year rental extension and 2 per cent limit on annual rent increases did not survive the negotiations.

What should expats renting in Spain watch?

For foreign residents, the most useful dates and issues to keep an eye on are:

• September 29: Council of Ministers has now approved the new housing package.
• Next stage: Congress must decide whether to convalidate the real decreto-ley measures.
• Rental contracts: Check whether an existing contract due to expire before the end of 2028 qualifies for the proposed extension.
• Evictions: The final conditions determining who qualifies for protection will be particularly important.
• Temporary rentals: New rules could affect people who have traditionally used seasonal contracts.
• Room rentals: The new framework could matter to both tenants and landlords renting individual rooms.

The Government’s announcement gives renters a reason to expect greater security, but the legal position will not be completely clear until the measures are published and Congress has dealt with them.

For British residents who rent their homes in Spain, therefore, Tuesday’s announcement is an important step, but Friday and the parliamentary process that follows could prove just as important.